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Xerox sees revenue dip

Wednesday, 30 January 2019

By Wayne Robinson

Revenue falling, profits rising: Xerox

Global document solutions business Xerox saw its annual revenues for 2018 dip by 4.2 per cent or 4.9 per cent in constant currency terms to US$9.83bn, from US$10.26bn last year, and US$10.77bn the year before.

The company expects a further five per cent fall in the coming year. Revenue for the final quarter of the year was down by 7.8 per cent, or 6.1 per cent in constant currency terms, to $2.53bn.

However GAAP earnings per share virtually doubled, up to US$1.38, which represented a 68c increase over the prior year. The adjusted EPS though was $3.46 for the full year, up by 0.01c.

In its 2019 guidance Xerox is saying GAAP earnings will double again to between $2.60 and $2.70 a share, while adjusted earnigns will rise to between $3.70 and $3.80 a share.

The Xerox share price has risen by 11 per cent on the latest figures, up to US$27.07, still below the $33 it was sitting at when the Fujifilm bid was launched and rejected / accepted / rejected.

The company – which spent much of the year in a galactic battle for control between the Board and its two biggest shareholders – is still the subject of a US$6.1bn bid from Fujifilm, its partner in the Fuji Xerox business that services the ANZ market. At the same time Fuijfilm is suing Xerox for $1bn.

Fujifilm manufactures the Iridesse which has been selling well for Fuji Xerox in Australia and New Zealand, while Xerox itself manufactures the iGen, which is not such a big seller here.